by Johan Kriek (jkriek@fxinstructor.com)

It’s only a couple of hours now before this Monday’s US trading comes to a close. Therefore, I would like to show you what we might expect going into the Asian later and European session tomorrow

Let’s start with the EUR/USD:

NO TRADE ZONE within a BEARISH PROBABILITY

The 60 minute trend is bearish. Immediate resistance resides at 1.4700. If 1.4700 is violated, the direction of highest probability will be bullish again

A bearish cross on the 1 hour stochastic will signal that market rhythm is trending in the direction of the highest probability (which is South) and present me with a trading condition

GBP/USD:

NO TRADE ZONE within a BULLISH PROBABILITY

The bearish 60 minute trend has been violated to the upside, therefore the bullish probability.

At this point in time, the 1 hour stochastic is pointing South which means market rhythm is either consolidating of trending downward.

I will only have a trading condition once market rhythm starts to trend in the direction of highest probability aka bullish 1 hour stochastic. Expect support at 1.6130

AUD/USD:

NO TRADE ZONE within a BEARISH PROBABILITY

The 60 minute trend is bearish but the 1 hour stochastic is bullish. Wait for a bearish cross on the 1 hour stochastic. Patience is the key here for all those Aussie traders out there :)

Expect huge support at 0.8595 and resistance at 0.8650. In fact, if 0.8650 is taken out, the direction of highest probability will be bullish (it might be short-lived, but nevertheless it will be bullish so watch out)

USD/JPY:

NO TRADE ZONE within a BULLISH PROBABILITY

For as long as the 60 minute trend remains intact, we will have a bullish probability. It is utterly risky to trade the Yen now as the 1 hour stochastic did give me a bullish cross but it is still unconfirmed

Expect serious support at 91.80

This analysis has been based on the Probability Study Technique which is derived from the Dow Theory

Also note that a “trading condition” does not constitute a trading signal, but rather a context to execute your own trading system within

For more about the Probability Study Technique, please visit forums.fxinstructor.com or register yourself a seat at http://www.fxinstructor.com/eng/courses/probability-reserve.php to learn this technique

Enjoy and good luck!

Johan